New York Times' earnings picture looks worrisome

Commentary: Newspaper giant grapples with advances in new media

NEW YORK (MarketWatch) -- The New York Times' media writer Richard Perez-Pena didn't mince words Thursday when he described the first-quarter earnings results of the newspaper's parent company.

The New York Times Co
NYT, +0.36%
which also controls the Boston Globe among other media assets, reported a $335,000 loss in the three-month period, "one of the worst periods the company and the newspaper industry have seen," he wrote in the Times.

The Times, like other media dynasties, continues to struggle with the prolonged advertising-revenue slump. With the digital invasion maturing into a full-blown digital occupation, the company has been throwing ideas against the wall and praying that they stick -- much like everyone else in the media these days. See more coverage.

But the Times is special because its flagship newspaper is so big, famous and influential. Advertising in print and online dropped 10.6% -- "the sharpest drop in memory," the Times itself pointed out.

These results should send tremors to every quarter of the media industry. This year was expected to be a lifeboat for advertising-oriented concerns, thanks to the prospect of an exciting presidential race and the Beijing Olympics enlivening the ad picture. The picture is looking grim.

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